Best Hybrid Mutual Funds in India [2025]
Hybrid Mutual Funds are a great investment option for those who want a balanced exposure to equity (for growth) and debt (for stability). In 2025, hybrid funds continue to gain popularity among conservative and moderate investors seeking diversified risk and consistent returns.
🧾 What is a Hybrid Mutual Fund?
A Hybrid Mutual Fund invests in a mix of asset classes such as:
- ✅ Equity (stocks)
- ✅ Debt (bonds, government securities)
- ✅ Sometimes Gold or REITs
The aim is to offer capital appreciation with reduced volatility by combining riskier assets (equity) with stable ones (debt).
- ✅ Equity (stocks)
🔍 Types of Hybrid Mutual Funds
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Type
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Equity Exposure
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Debt Exposure
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Ideal For
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|---|---|---|---|
Business News
🏆 Best Hybrid Mutual Funds to Invest in 2025
Here’s a list of top-performing hybrid mutual funds based on returns, consistency, and AUM:
🔹 1. ICICI Prudential Equity & Debt Fund
- Type: Aggressive Hybrid
- 5-Year CAGR: 14.2%
- AUM: ₹41,000+ Cr
- Why Invest: Strong equity focus with consistent long-term returns
🔹 2. Mirae Asset Hybrid Equity Fund
- Type: Aggressive Hybrid
- 5-Year CAGR: 13.7%
- AUM: ₹8,200+ Cr
- Why Invest: High equity quality, suitable for growth-oriented investors
🔹 3. HDFC Balanced Advantage Fund (BAF)
- Type: Dynamic Asset Allocation
- 5-Year CAGR: 11.9%
- AUM: ₹64,000+ Cr
- Why Invest: Adjusts equity-debt mix automatically based on market conditions
🔹 4. Kotak Equity Hybrid Fund
- Type: Aggressive Hybrid
- 5-Year CAGR: 12.8%
- AUM: ₹5,600+ Cr
- Why Invest: High equity potential with limited risk
🔹 5. ICICI Prudential Balanced Advantage Fund
- Type: Dynamic Allocation
- 5-Year CAGR: 11.3%
- AUM: ₹54,000+ Cr
- Why Invest: Ideal for first-time mutual fund investors
📈 Who Should Invest in Hybrid Funds?
Hybrid funds are perfect for:
- 🧓 Retired investors seeking steady income + mild growth
- 👨💼 First-time investors wanting lower equity risk
- 👨👩👧 Families planning mid-term financial goals (3–5 years)
📊 SIP investors seeking portfolio stability
💡 SIP vs Lumpsum in Hybrid Funds
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Mode
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Best For
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Advantage
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|---|---|---|
🧠 Things to Keep in Mind
- 🔒 Lock-in: Most hybrid funds are open-ended (no lock-in)
- 🧾 Taxation: Based on equity % (if equity >65%, taxed like equity fund)
- 📊 Risk: Lower than pure equity, but higher than pure debt
- 📉 Returns: Typically 10–14% over 5 years (non-guaranteed)
- 🔒 Lock-in: Most hybrid funds are open-ended (no lock-in)
Frequently Asked Questions (FAQs)
Hybrid funds are less risky than equity funds and are ideal for new or conservative investors who want some exposure to the stock market without going all in.
A minimum of 3–5 years is ideal to ride out short-term volatility and enjoy meaningful returns.compounding.
Some conservative hybrid funds offer monthly/quarterly dividend payouts, but they depend on fund performance and are not guaranteed.
- If equity exposure >65%: Taxed like equity (LTCG @10% after ₹1 lakh)
- If equity <65%: Taxed like debt (LTCG @20% with indexation after 3 years)
Funds like HDFC Balanced Advantage Fund or ICICI Balanced Advantage Fund are beginner-friendly due to their auto-balancing features and stable returns.
🏁 Conclusion
- Hybrid Mutual Funds offer the best of both worlds—growth from equity and stability from debt. Whether you’re starting your investment journey or want to balance your existing portfolio, these funds are a smart choice for 2025.
- 👉 Choose a fund based on your risk appetite, financial goals, and investment horizon. Don’t forget to complete your KYC and invest via trusted platforms like Groww, Zerodha Coin, NJ Wealth, or MFU.
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